The USDJPY pair eventually broke above strong barriers at 110.00 (psychological / double upside rejection) and 110.15 (200SMA) and cracked Fibo barrier at 110.26 (61.8% of 113.74/104.63 descend) on fresh acceleration of US dollar on rising US yields which broke above 2014 high and solid US retail sales data.
Retail sales rose 0.3% in Apr, more slowly than expected (0.5%) but previous month’s figure was revised higher (0.4%).
The dollar bulls maintain pace despite weaker than expected retail sales signaled consumer spending momentum is weaker at the beginning of Q2.
Break above 200SMA and probe above 110.26 Fibo barrier is strong bullish signal which requires confirmation on daily close above these barriers.
Bulls eye initial targets at 110.48 (02 Feb high) and 110.83 (27 Nov low), regain of which would expose barrier at 111.59 (Fibo 76.4% of 113.74/104.63).
Broken 200SMA and former 110 barrier now act as initial supports, followed by bull-trendline at 109.66.
Res: 110.48; 110.83; 111.00; 111.59
Sup: 110.15; 110.00; 109.66; 109.46